By Nancy Leinfuss
NEW YORK (Reuters) - Benchmark U.S. subprime mortgage ABX indexes slid further in nervous trade on Wednesday, as Moody's Investors Service weighed in with another downgrade warning to $5.0 billion of collateralized debt obligations, traders said.
ABX 07-1 "BBB-" index, which is tied to loans made to risky borrowers in last year's second half, opened at 50.50 bid on Wednesday but quickly sank to a 49 bid by afternoon, falling below Tuesday's record low close of 51.42, traders said.
The ABX 06-2 index, which references loans from 2006's first half, opened around 58 bid but slid to 55.16 bid in afternoon trade, also falling below Tuesday's record low 58.58 close, traders said.
Wednesday, July 11, 2007
Posted by Bakersfield Bubble at 1:14 PM